L Squared is partnering with Functional Devices’ Management to continue the Company’s strong organic growth and accelerate its acquisition strategy

L Squared Capital Partners (“L Squared”) announced today the acquisition of Functional Devices, Inc. (“FDI” or the “Company”), a leading provider of quality field devices for building automation and emergency lighting systems. Functional Devices is best known for its iconic RIB® (Relay in a Box®) brand, which has become the industry standard for reliable, easy-to-install relays, current sensors, power supplies, and other power control products across commercial buildings, data centers, healthcare, and other high-performance environments. Mark Fernandes, President and CEO of Functional Devices, and the existing FDI leadership team invested in the transaction alongside L Squared and will continue to lead the business as we embark on this next phase of growth.

This investment reflects L Squared’s thesis in the building automation and controls market, driven by durable tailwinds including energy efficiency requirements, electrification, increased system complexity, and accelerating investment in data center infrastructure. FDI represents L Squared’s continued commitment to building scaled platforms around exceptional brands with mission-critical products and loyal customer bases, where we can make incremental investments in new product development and strategic acquisitions to increase our impact with distributors and end customers.

Mark Fernandes added, “Partnering with L Squared is a significant milestone for Functional Devices. We share a long-term vision for the business that is grounded in delivering dependable, high-quality products and investing in the people who make that possible. L Squared’s belief in our team, our new product development engine, and our acquisition strategy make this a natural fit. We are excited to build on our momentum, pursue strategic acquisitions, and create even greater value for our customers, employees, and the buildings and communities we serve.”

Functional Devices’ RIB® brand is widely recognized for best-in-class quality, reliability, and ease of installation, earning deep trust across all levels of the market, including engineers, system integrators, and OEM partners. The Company’s products play a critical role in HVAC, lighting, and building management systems, where performance and uptime are essential. As buildings become more intelligent and data-intensive, demand for reliable solutions continues to grow.

“We are excited to partner with the FDI team, who have established themselves as a market standard within building automation systems,” said Sean Barrette, Managing Partner at L Squared. “Building automation has been a core area of focus for L Squared, and we see a highly fragmented landscape of mission-critical businesses that can benefit from the scale, resources, and brand strength of the Functional Devices platform.”

L Squared is partnering with the FDI management team to support the Company’s next phase of growth, including continued investment in new product innovation, expanded commercial reach, and making strategic acquisitions. L Squared is currently evaluating a robust pipeline of acquisition opportunities and is actively seeking add-on acquisitions of complementary businesses within the building automation peripheral components market to deepen share in core product categories and expand into adjacent offerings.

“FDI fits squarely within L Squared’s core investment strategy, combining a trusted brand, critical products, and a strong operating foundation,” said Tyler Huez, Partner at L Squared. “We look forward to applying our repeatable value-creation playbook alongside the FDI team to drive the next phase of growth.”

L Squared Capital Partners IV, and its affiliates, in partnership with FDI’s executive management team, provided the equity to support the transaction. Apogem Capital and BMO provided debt financing to support the acquisition. Vedder served as legal counsel to L Squared, while Harris Williams acted as financial advisor and Katten Muchin Rosenman LLP served as legal counsel to Functional Devices and Shorehill Capital.

The L Squared deal team consisted of Sean Barrette, Tyler Huez, Jack Foley, Grant Brown, and Casey Jones.

About L Squared Capital Partners

L Squared Capital Partners is a private equity investment firm with over $2 billion of assets under management and is headquartered in Newport Beach, CA, that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Technology-Enabled Services & Software, and Industrial Technology & Services. L Squared’s unique investor base of family offices and institutions enables the Firm to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over 15 years and have over 125 years of combined experience investing in growing private companies. For more information, please visit www.LSquaredCap.com.

About Functional Devices

Founded in 1969 and headquartered in Sharpsville, IN, Functional Devices is a leading provider of relay and control solutions for building automation systems. The Company’s flagship RIB® (Relay in a Box®) brand is trusted by engineers, contractors, and OEMs worldwide for its reliability, ease of installation, and performance in mission-critical applications, including HVAC, lighting, energy management, and data centers.

Provided for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase of any investment. Investing with any investment firm is suitable only for qualified investors that fully understand the risks of such an investment. L Squared Capital Partners is an investment adviser registered with the United States Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investments with L Squared Capital Partners are only offered in accordance with applicable securities laws.

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